Crypto Markets Need More Scrutiny From SEC, Investor Groups Say

The advocacy groups called the crypto industry “a Wild West” in a letter to SEC Chair Gary Gensler.  

AccessTimeIconSep 20, 2021 at 10:48 p.m. UTC
Updated May 11, 2023 at 6:23 p.m. UTC

Investor advocacy groups urged U.S. Securities and Exchange Commission Chair Gary Gensler to more tightly regulate the cryptocurrency industry in a letter on Monday.

  • The letter signed by Americans for Financial Reform Education Fund, the Consumer Federation of America and others specified stablecoins, crypto lending and exchanges as key areas in need of more regulation.
  • ”Without significant regulatory guidance, the digital asset marketplace has been born and grown into a Wild West,” the groups wrote in their letter. “It is urgent for the Commission and other federal financial regulators to enforce the law to better protect investors and improve the integrity and stability of the digital asset markets.”
  • The groups wrote that rules governing securities had been in place for decades and urged the SEC not to undermine such regulations and their investor protections by creating “carve-outs” for certain crypto assets.
  • They also singled out stablecoins USDC and tether as assets that appeared to be securities similar to money market funds, and which could pose significant risks to investors.
  • The letter reiterates many of the same positions Gensler himself has espoused in testimony before Congress and in other settings, and arrives as the SEC and other regulators have started to pursue more actions against the crypto industry.

UPDATE (Sept. 20, 21:15 UTC): Updated with additional details on the content of the letter in the third and fourth bullet points.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.


Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.